Nordic private asset specialist CapMan has established CapMan Nordic Real Estate III fund (CMNRE III) with €313 mln of equity commitments from Nordic, European, and North American institutional investors.
CMNRE III succeeds CapMan’s two earlier Nordic value-add funds raised in 2013 and 2017. CapMan said that it believed that due to investor demand, the fund would achieve its target size of €500 mln before the year end, which would make it the largest fund in CapMan’s operating history to date. With leverage, the gross investment capacity of the fund exceeds €1.2 bn.
Mika Matikainen, managing partner of CapMan Real Estate said: 'The fund’s investor base is distinctly international, with approx. 70% of commitments so far coming from outside the Nordic countries. We look forward to establishing long-term relationships with them all.'
In line with its predecessor funds, CMNRE III invests mainly in transitional offices and select residential strategies in capital cities as well as in other major growth centres in Sweden, Finland, Denmark and Norway. The fund may also invest selectively in other property sectors supported by what CapMan called 'prevailing megatrends'.
'The Covid-19 pandemic and related uncertainty has sparked a debate regarding the demand for office space as many industries and work practices are in transformation.
'In our experience, the demand for modern and flexible office space has remained high especially in central locations where tenants value high quality and versatile solutions.
'Simultaneously, there is demand for the refurbishment and transformation of older attractively located office stock to comply with requirements for other types of use, e.g. schools and public services, which is also a focus area for our fund,' Matikainen added.
'Our real estate portfolio has continued performing well and the team has completed several successful transactions during the current year despite a challenging market. The fund being raised now is set to become the largest in CapMan’s history. I am confident that our third pan-Nordic value-add real estate fund will build on the successful track record of the team,' concluded Joakim Frimodig, CapMan’s CEO.
